Using the PowerPoint Creating Projections, create a new set of projections for Years X E and X +1 E.

Please work must be done in excel worksheet. Thank you

All historical information remains the same (through Year X-1).

Use this new set of assumptions:

• Revenue growth:

30% Year X E

30% Year X + 1 E

• 1% improvement in Gross Margin for Year X E (from year X-1). No further change in the Gross Margin for Year X+1.
• 1% improvement in Selling in Year X E. Same level in Year X+1 E.
• G&A remains constant on a common size basis.
• $10,000 increase in R&D in X E.
• Same R&D level in Year X+1 E.
• Basic Shares outstanding 3,000,000.
• A new section of the existing plant is constructed for $300,000. This new construction is depreciated over 30 years using the straight line method. All other depreciation remains the same for the years X E and X+1 E.
• The plant is financed with a $300,000 10 year bond with a fixed interest payment of 10% annually.
• The Company, for the first time, grants 500,000 options to various members of management with an exercise price of $1.00. These options are granted on the first day of Year X E.
• There are no other options, warrants or convertible securities.
• The average stock price for Year X E and Year X+1 E is projected to be $5.00.
• All other interest payments, interest income and tax rates remain the same.